An area firm wants to develop 240 upscale apartments in Mequon, creating what would be among the largest rental housing developments in that community.

Continental Properties Co. is proposing the development, called Springs at Mequon, for 16 acres at 13332 N. Port Washington Road south of Bonniwell Road.

The proposal was to have an initial review before the Mequon Plan Commission at its Monday night meeting.

The city's recommended uses for much of the undeveloped parcels along Port Washington Road include apartments, according to the Department of Community Development.

But the proposed development site is about a mile from city sewer and water service. City staff is recommending the Springs at Mequon be connected to city sewer and water service as a condition for city approval.

Continental is proposing 12 two-story buildings, each with 20 townhouse-style apartments. The units would range from 1,000 to 3,000 square feet, and the development would include a club house with a fitness center, kitchen, community room and rental office, and a separate outdoor swimming pool.

The demand for apartments from younger, upwardly mobile renters is increasing, according to information submitted to the Plan Commission by Continental. However, Mequon hasn't added new, higher-end apartments in over 20 years.

"Mequon currently lacks adequate housing options to capture this segment of the population," according to Continental's proposal. The apartments also would attract empty-nesters, the firm said.

Of Mequon's 8,806 occupied housing units, 1,152 are rentals, according to the census data. "Housing units" include single-family houses, condominiums and apartments.

Continental, based in Menomonee Falls, owns 91 properties that include 4.25 million square feet of retail space; 5,448 multifamily units in 21 communities; and two hotels totaling 471 rooms.